EPAM Systems Inc (EPAM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.68% | 28.07% | 31.88% | 33.91% | 34.85% |
| Operating profit margin | 11.52% | 10.69% | 11.88% | 14.43% | 14.26% |
| Pretax margin | 12.36% | 11.44% | 10.51% | 14.19% | 14.23% |
| Net profit margin | 9.61% | 8.89% | 8.69% | 12.82% | 12.30% |
EPAM Systems Inc's profitability ratios show a mixed performance over the years. The gross profit margin has decreased from 34.85% in 2020 to 30.68% in 2024, indicating a decline in the company's ability to generate profits from its core operations.
Operating profit margin also experienced a slight fluctuation, starting at 14.26% in 2020, peaking at 14.43% in 2021, and then gradually declining to 11.52% in 2024. This suggests that the company's operating efficiency may have faced some challenges over the years.
Similarly, the pretax margin has shown variability, with a decrease from 14.23% in 2020 to 12.36% in 2024. This trend indicates that EPAM's profitability before accounting for taxes has experienced some fluctuations.
On the other hand, the net profit margin, which represents the company's bottom-line profitability, has shown a relatively stable performance, ranging from 8.69% in 2022 to 12.82% in 2021. Although there was a slight decline to 9.61% in 2024, the net profit margin has remained within a relatively narrow range.
Overall, EPAM Systems Inc's profitability ratios reflect a mix of challenges and stability in different aspects of its operations over the years. Monitoring these ratios can provide valuable insights into the company's financial health and performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.46% | 11.52% | 14.29% | 15.39% | 13.94% |
| Return on assets (ROA) | 9.57% | 9.58% | 10.46% | 13.67% | 12.02% |
| Return on total capital | 15.01% | 15.46% | 19.09% | 18.96% | 19.13% |
| Return on equity (ROE) | 12.52% | 12.02% | 13.97% | 19.37% | 16.50% |
EPAM Systems Inc's profitability ratios exhibit a mixed performance over the years.
- Operating return on assets (Operating ROA) increased from 13.94% in 2020 to 15.39% in 2021, but then decreased slightly to 14.29% in 2022 and further to 11.52% in 2023, before dropping to 11.46% in 2024. This ratio indicates the company's ability to generate operating profit from its assets, with higher percentages generally seen as favorable.
- Return on assets (ROA) followed a similar trend, starting at 12.02% in 2020 and reaching its peak at 13.67% in 2021, but then declining to 9.57% by 2024. ROA reflects the company's efficiency in generating profit from its total assets, so the decreasing trend suggests a potential decrease in asset efficiency over time.
- Return on total capital remained relatively stable, with percentages ranging from 18.96% to 19.13% between 2020 and 2022, before dropping to 15.01% in 2024. This ratio evaluates how effectively the company utilizes its total capital to generate profits, with higher percentages indicating better performance.
- Return on equity (ROE) started at 16.50% in 2020, peaked at 19.37% in 2021, then gradually declined to 12.52% by 2024. ROE measures the company's profit generation for each unit of shareholder equity, and the declining trend suggests a potential decrease in shareholder value creation over the years.
In summary, EPAM Systems Inc experienced fluctuations in its profitability ratios over the period, with Operating ROA and ROE showing more significant changes compared to ROA and Return on total capital. Further analysis would be needed to understand the underlying reasons for these trends and to assess the company's overall financial health.